00:01
So hi guys.
00:02
For problem two, we are examining two different cases.
00:06
So the first problem we are examining an increase in demand is bigger than an increase in supply.
00:15
So here is a demand and a supply curve.
00:21
Okay, s1 for an initial supply and a d1 for initial demand.
00:27
So a larger shift in demand, this large a shift in demand and a smaller shift in supply as indicated in the graph clearly.
00:42
So as you can see, this one here is e equipleum price 1 and this here is equiprium price 2.
00:54
So to determine the differences, it's easier if we draw the dash line in corresponding to the price and the quantity for both cases.
01:06
So if we draw the dash line like this, we can see a increase in price and also a massive increase in quantity.
01:18
So the result of this is an increase in price and increase in quantity.
01:26
For the next case, it's the opposite, which is an increase in supply, is bigger than an increase in demand...